Task 5 - Contracts of Employment

Contracts of Employment

Employment Contract - This contract's purpose is to set the terms - what you are expected to do at the company, and what will be done in return by the company. Contracts at gaming companies are very similar to contracts at any other companies. Game Industry contracts usually include sections about employee benefits, confidentiality, and not competing with said company shortly after the end of employment there.

Development Agreement - Game publishers often hire developers to make the video games for them. A development contract is used to set the terms between the publisher and developer.

• Terms - The terms show how much the publisher will pay the developer, how long the developer has to develop the game, and what the royalty rate will be (if they get royalties).
• Ownership - This is to clarify whether the IP belongs to the publisher or the developer.
• Warranties - The developer has to promise that it won't use other people's source code, and the publisher has to swear it has the right to ask the developer to make the game.

License Agreement - If a publisher wanted to make a video game out of something, such as a movie, a contract would need to be signed with the owner of the IP, spelling out the agreed terms.

• What's being licensed - The contract clearly states what the publisher is getting the rights to make into a game.
• What the license may be used for - The contract could specify that the publisher may only make the game on the XBOX 360 or PS3.
• Territory - The contract will likely specify which parts of the world the game can be published. Publishers usually try to get worldwide rights, but that is charged more by licensers.
• Terms - It's very unlikely that the contract would run forever; they usually last for a maximum of 5 years.

NDA and Confidentiality Agreement - An NDA is a Non-Disclosure Agreement. In order to do business with another company, a secret (game plan, new technology, etc.) must be shared with them, but in return that company must not share this secret with anyone, or damage will be dealt to the first party. If the secret is shared, the second party can be taken to court for violating the agreement.

Collaboration Agreement - The contracts above are used most frequently in the gaming industry. A lot of people are creating Indie/hobby games (games that might not make any money), and they need an agreement that covers any issues of ownership and compensation of the game. Most Indie/hobby games fail, and one of the reasons this happens is because of disagreements with who owns what, who is supposed to do what, and who is going to get what. A collaboration agreement sets the terms, of how the game project is managed/controlled, who the IP belongs to, how the game will be used, and how income will be handled (if there is any).